Among the biggest, most hyped about technologies of 2017, learn how predictive analytics is really changing employer-employee interactions, across every step of the journey.

First came Big Data – a tech heavyweight that would dominate enterprise conversations for years to come. Then, predictive analytics followed: a worthy successor, taking the raw potential of unprocessed data, to extract insights actionable on the floor.

Today, predictive analytics has moved out of pure-play tech circles (think data scientists and IT experts) into more mainstream verticals. Companies are now taking what was the bastion of a select few, and applying it to real processes, everyday operations that can transform business as usual.

That’s where Human Resources enters the picture.

HR departments have long been entrusted with some of the most vital functions in any organization, starting at talent acquisition, moving to performance/productivity mapping, upskilling, and even outplacement. The power of analytics can make a sizable difference at every step – bringing an element of ‘predictable, quantifiable outcomes’ to something that’s quintessentially dynamic – human capabilities.

And companies are awake to this potential. In 2015, only 24% employers were ready to build predictive analytics-based people management models. Next year, the number jumped to 32%. Fast forward a couple of years, and predictive analytics HR tech startups are bagging as much as USD 43 million from a single investor.

Clearly, the terrain is shifting – and fast. Here’s how 2018 will bring in a whole new set of use cases for analytics in the HR space:

That’s why innovators like OutMatch are deploying analytics to sift through a breadth of data, to determine which candidate will complete the workforce, like the perfect HR puzzle.

Even traditional aspects of recruitment like checking backgrounds and outlining strategies gain a helping hand from analytics. Advanced technologies are making it easier than ever to extract these critical insights, from what’s a veritable mountain of historical data.

Finetune performance and boost productivity:

Once the ideal employee is identified and successfully onboarded, it’s up to HR to help maximize their role in the company. Using analytics, managers can keep a razor-sharp focus on performance, progress, slips, and triumphs. This data, when aggregated, offers key insights – Founder of IntelliHR Robert Bromage finds a lot of interest brewing in this space: “I think investors are recognizing the early opportunity to gain exposure and participate in the data analytics megatrend.”

IntelliHR is an HR analytics company using tech to iron out knots in the workflow – improving individual productivity, and enabling significant costs savings for employers.

Upskill the workforce:

Mexico Government’s Ministry of Energy is currently harnessing a predictive analytics model for workforce planning – the goal is to locate skills gaps in critical oil and gas occupations (both existing and potentials) and eliminate them for a smoother pipeline.

The solution takes several factors into account, like adjustable macroeconomic variables which directly correlate to demand and supply of skilled labor in the industry.

What’s more, the impact isn’t limited to large-scale, bespoke implementations. Take Yoi, for example, a training solution that weaves analytics into workplace learning to make the experience more contextual.

This is where the analytics’ true power comes into play – employee satisfaction has always been a palpable but hard-to-measure variable. Solutions that crunch disparate figures and non-numeric data (surveys, feedbacks, personal interactions) and offer insights can be invaluable.

Gusto is a tool that maps a company’s ‘happiness quotient’, leveraging analytics to understand morale levels, motivation needs, and the overarching status of an employer’s ‘people culture’. These are ideas that goe beyond just tweaking workforce practices – it can reshuffle the very basics of how managers communicate and engage with the workforce.

“Employee experience programs used to take months to develop and to collect useful information,” says Webb Stevens, head of product at Qualtrics. Their Qualtrics iQ is a simple, drag-and-drop interface that lets users quickly scan millions of response records and gain from the outcome, in a matter of days.

Retain top-tier talent:

Here’s a quick snapshot of the criticality of good retention programs: a senior executive at a US-based contact center said that in spite of having a workforce in the thousands, his average cost per attrition stood at USD 3,000. And when it came to the bottom line, the impact increased four-fold.

Employers invest sizable resources in identifying, onboarding, and training workers – those with high turnover end up incurring severe costs. And with high attrition negatively impacting the employer brand, the circle could turn vicious.

Predictive analytics takes historical data to unearth possible attrition before it happens. "Predictive Analytics analyzes an organization's data to identify the factors that have the biggest influence on employee flight risk. Managers are now able to address potential issues before they become unmanageable," said Ceridian’s VP of Product Management, Eric Schuster.

One of the five trends that stole the show last year was predictive analytics – at iconic HR event Unleash Startup Stage, the technology promised new vistas of applications and improvement.

Beyond a simple solution or product, it is a business chameleon, evolving, adapting, and plugging into a wide range of requirements and a variety of organizational volumes. How is predictive analytics altering the face of HR and people management at your company?